College of Admission Tests Multan

Interest

Solve the question of and select the option from the choices A through D/E. Check your Answer and view the explanation.

Question: 8

What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum
  • 110
  • 120
  • 130
  • 140

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Correct Answer: B

Let the present worth be P

Then, Simple Interest = (132 - P)

P × 5 × 2 100 = 132 - P

⇒ 10P = 13200 - 100P

⇒ 110P = 13200

P = 120